Finding top Canadian stocks that have managed to not only eke out strong market share but also absolutely dominate their industries isn’t that hard. Indeed, the Canadian market is top-heavy, with many top industries dominated by one or a few players.
That said, picking the specific sectors one wants to put capital to work in for the long haul can be challenging. Among the oligopolies and monopolies in the Canadian market, here are three stocks I think are worth watching. For those looking to bet on a directional move in one of these sectors, these companies would be how I would play such trends.
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Air Canada
Aside from rival WestJet owned by Onex Corp (TSX:ONEX), Air Canada (TSX:AC) really is the only game in town in the world of air travel – at least within Canada.
From an international flight perspective, Air Canada absolutely dominates the Canadian air travel market, and that’s something that’s likely to continue for some time. In previous times of turbulence, the Canadian government has stepped in to bail out Air Canada. And while the company’s share price and valuation remain low (even on a historical level), that’s something for investors looking for undervalued stocks right now to note.
Rogers Communications
The Canadian telecommunications sector is really a three-company oligopoly. But of the major players in this space, Rogers Communications (TSX:RCI.B) is clearly the leader and the company to watch.
Like Air Canada, the past year hasn’t been very friendly for shareholders of this stock. However, over the long term, Rogers has proven to be a steady cash flow machine, generating significant dividend income for investors.
For those looking for a safe and defensive industry to bet on and a company that provides a dividend yield of 4.1%, Rogers isn’t a bad pick.
Curaleaf
Canada-listed Curaleaf (TSX:CURA) is really the largest U.S. multi-state operator in the cannabis industry. In some regards, I think the company has a dominant market share in this key market, though there are plenty of other competitors rounding out the industry.
That said, for investors looking for a Canada-listed cannabis stock that provides meaningful exposure to the U.S. market, Curaleaf would be my top pick in this space. The company has shown an ability to grow while generating cash flow, and its earnings expectations continue to improve. So long as that’s the case, this is a top marijuana stock to keep an eye on, in my view.
